Biotech Stock Sinks After Disappointing Trial

AKRO is trading at its lowest levels since September 2022

Laura McCandless

Deputy Editor

Oct 10, 2023 at 11:18 AM

AKRO

Akero Therapeutics Inc (NASDAQ:AKRO) is plummeting to 52-week lows, after its treatment for severe fatty liver disease, efruxifermin, missed its main goal in a mid-stage trial. At last glance, Akero stock was down 67% to trade at $16, its lowest levels since its Sept. 2022 bull gap. Since the start of the year, the equity is down roughly 70%.

Options traders are blasting AKRO in response. So far, 7,021 calls and 4,214 puts have been exchanged, which is seven times the average daily options volume already. The October 25 call is the most popular contract, with new positions being opened there.

Analysts are wholeheartedly bullish on the security, leaving room for potential bear notes moving forward. All nine brokerages in coverage carry a "strong buy" rating on AKRO, while the 12-month consensus price target of $73 is almost a 340% premium to current levels.

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